SECI Invites EoI To Gauge Market Demand For Virtual Power Purchase Agreements In India

Solar Energy Corporation of India, a Navratna Government of India enterprise, has issued an Expression of Interest (EoI) to assess market demand for Virtual Power Purchase Agreements (VPPAs). This move is seen as an important step toward supporting India’s target of achieving 500 GW of renewable energy capacity by 2030. Through this initiative, SECI aims to act as a national facilitator by aggregating demand from industrial, commercial, and public sector consumers and using it to design structured procurement frameworks.

The EoI focuses on understanding how VPPAs can be adopted in the Indian market. A VPPA works as a financial contract-for-difference between a renewable energy generator and a consumer. Unlike traditional power purchase agreements, there is no physical delivery of electricity. Instead, the generator sells electricity in the open market at prevailing prices. If the market price is higher than the agreed strike price, the generator pays the difference to the consumer. On the other hand, if the market price is lower, the consumer compensates the generator. This mechanism helps both parties manage price risks while supporting renewable energy generation.

An important feature of VPPAs is the transfer of Renewable Energy Certificates (RECs) to the consumer. These certificates allow buyers to meet their Renewable Consumption Obligations and demonstrate their commitment to clean energy. This structure is especially useful for companies looking to meet sustainability targets without directly sourcing physical power from renewable projects.

SECI has clearly stated that its role in this process is limited to facilitation. It will aggregate demand, prepare tender documents, and conduct the bidding process to discover competitive strike prices. However, it will not act as a counterparty in the contracts and will not take on any financial liability or responsibility for settlements between buyers and generators.

At the EoI stage, no response fee is required from participants. However, a non-refundable procurement capacity fee of INR 2,500 per MW, along with applicable taxes, will be charged from buyers for whom SECI conducts the tendering process. This fee must be paid at least seven days before the issuance of the tender. Details regarding Earnest Money Deposit and Performance Bank Guarantees have not been specified yet and will be included in future Request for Selection documents after the demand assessment is completed.

The EoI is open to companies registered under the Companies Act, 2013, as well as Limited Liability Partnerships and government-owned entities in India. Consortiums and joint ventures are not allowed to participate. The document was issued on April 17, 2026, and responses must remain valid for six months from the submission deadline.

Participants are required to submit their responses via email and inform SECI of any discrepancies in the document within 20 days of issuance. While participation in this EoI is non-binding, it is expected to play a key role in shaping future tenders and enabling consumers to hedge against price volatility while contributing to the country’s renewable energy transition.